H.B. No. 4900 aims to prohibit the investment of state funds in certain countries and private business entities associated with those countries, specifically targeting nations deemed as "countries of concern," which include China, Iran, North Korea, and Russia. The bill introduces new definitions and provisions in the Government Code, including the designation of countries of concern by the governor and the establishment of criteria for scrutinized companies. Notably, the bill expands the definition of scrutinized companies to include those that are organized under the laws of, or controlled by, a country of concern, as well as those owned by individuals from such countries.

Additionally, the bill outlines specific prohibitions on investments in securities issued by countries of concern and banks located in those countries. It mandates that investing entities notify scrutinized companies of their status and provides a 90-day window for these companies to alter their organizational structure to avoid divestment. If a company fails to make the necessary changes within this timeframe, the investing entity is required to divest from that company. The bill is set to take effect on September 1, 2025, and the comptroller is tasked with maintaining a list of scrutinized companies, which will be updated by January 1, 2026.

Statutes affected:
Introduced: Government Code 2270.0001, Government Code 2270.0002, Government Code 2270.0201 (Government Code 2270)